Income tax on gold: SGB vs gold ETF vs physical gold. Know taxation rules here

livemint.com:

gold ETF, gold saving funds, and Sovereign Gold Funds to invest in gold. For tax purposes, gold coins/bars and jewellery become a long-term capital asset if held for 36 months or more. Gold ETF and units of Gold Saving Funds bought till 31 st March 2023 are treated and taxed like physical gold and become long-term capital assets if held for 36 months or more.

The profits on sale after 36 months of holding are treated as long-term capital gains and taxed at a flat 20% after applying indexation. The profits made within 36 months are treated as short-term capital gains and are taxed as short-term capital gains at the slab rates applicable to you. Profits on the sale/redemption of Gold ETFs or units of gold saving funds bought after 31 st March 2013 will be taxed as short capital gains irrespective of the holding period.

So these will be taxed like your bank fixed deposits except that the profits will become taxable only when you sell or redeem your investments whereas, for interest on fixed deposits, you have two options to offer it for taxation. Either you can offer it for taxation on an accrual basis or on a receipt basis when you actually receive the interest on the maturity of the fixed deposits. The accrual or receipt basis of accounting in respect of interest has to be followed consistently year after year.

Interest on Sovereign Gold Bonds is paid @ 2.50% on the issue price and is credited to your bank account on a half-yearly basis. The interest received on Sovereign Gold Bonds is fully taxable even though no tax is deducted at the source at the time of payment of the interest. The Sovereign gold bonds are redeemed after 8 years of its issue date.